Charleston SC Real Estate Guide, Mt. Pleasant South Carolina Real Estate, SC Coastal Homes

In 2005, If you sell investment property before the end of the first year of ownership, you will be required to treat the sale as a short term gain and will be taxed at ordinary income rates. If you hold it for more that a year, you will be taxed at the capital gain rate of 15%. You can also put the proceeds into a property equivalent in value under Section 1031 of the tax code. Under the code, you would have 45 days to identify a comparable property and 180 days to conclude the transfer. Additional 1031 exchange rules are located elsewhere on my site. This information should not be considered a substitute for advice of your CPA.